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Current Affairs

09/20/2017

“No one wants to talk about their death. It is not a pleasant conversation and it is generally awkward, emotional and uncomfortable.”

It’s not that uncommon to learn that a decedent made all of the arrangements for his or her own funeral: this includes selecting a casket, the burial site, the funeral home and details of the memorial service. This can make a person’s passing much easier on their family.

Hometown Life’s recent article, “Perhaps awkward, preplanning funeral makes sense,” says that no matter how much we ignore it, we’re all going to die. Considering funeral arrangements can only make things easier for those we leave behind. That’s when a family is usually in shock, emotional, depressed, stressed or otherwise not at their best.

Unfortunately, if you do not make your own funeral arrangements, then your loved ones will need to make them. That is probably the absolute worst time to arrange a funeral. It can be hard to think clearly after the death of a loved one, and people absent-mindedly overspend for funeral arrangements. As a result, the costs add up. A major advantage of funeral pre-planning is that you can make decisions with a clear head and focus more on the expenses. In fact, pre-planning will generally result in overall lower expenses. In fact, pre-planning will generally result in overall lower expenses. You also eliminate this burden from your family when they’re in grief.

When considering pre-planning your funeral, think about these issues:

Do you want to be cremated or buried?

Do you have a specific funeral home you want to use?

What type of casket do you want?

What type of service would you like to have?

If you settle these questions and pre-plan your funeral, then you remove the burden from your family, and you’re more likely to have your wishes followed and control the costs.

Just like estate planning, it’s not just to save on taxes or avoid probate. It’s also because you want to make things as easy as possible on those you love, when you pass away.

“This legislation will enhance our response to the cowardly criminals who try to exploit America’s seniors. Families across America, including in my home state of Iowa, have been victimized by such crimes, and as the population ages, we can expect more and more victims if we don’t act. The Elder Abuse Prevention and Prosecution Act takes meaningful steps to equip law enforcement, seniors and caregivers with additional tools so they can deter these crimes and hold perpetrators accountable,” Grassley said.

“Our bipartisan legislation will help prevent the utterly unconscionable scourge of elder abuse and hold its shameful perpetrators accountable. Far too many seniors in our country are abused or exploited by the very people who are supposed to care for them. This issue hit home in Connecticut with the tragic case of Purple Heart recipient Robert Matava. A national hero, he deserved the best care during his golden years. Instead, he was defrauded and left penniless by those he trusted most. Abuse of our country’s elders is too often overlooked, and we must do everything in our power to ensure their financial security and physical safety,” Blumenthal said.

Research shows that financial exploitation may be the most widespread form of elder abuse. It costs seniors in the U.S. over $36 billion annually. The legislation will expand data collection and information sharing to help prevent and respond to all forms of elder abuse and exploitation, including financial crimes against the elderly.

The bipartisan Elder Justice Coalition called the bill “one of the most comprehensive and meaningful bills ever developed to address the rapidly increasing problem of elder financial abuse in America.” It also has the backing of Consumers Union, SIFMA, the 60 Plus Association, the Alzheimer’s Association, the National Center for Victims of Crime and many others.

Grassley chaired a Judiciary Committee hearing in 2016 to look at the best way to protect older Americans from financial abuse. The Senator also launched several inquiries to combat crimes against seniors and worked to raise greater awareness for these issues.

08/28/2017

According to a recent Forbes article, “5 Financial Planning Strategies For Singles,” most of the advice on this topic isn’t very different from what’s given to married couples. Nonetheless, here are a few tips to consider, especially if you’re single.

Start saving for retirement now. Many of us will bank on Social Security along with our own personal savings in retirement. Some may have a pension or will possibly continue working in retirement. Whatever the exact plan, a good retirement savings objective is 15% of your salary and include your employer match, if you get one in your 401(k) plan. If you don’t have a plan through work, consider starting a personal IRA.

Prepare for the unexpected. Singles don’t have the luxury of second income as a fall back, so build up an emergency fund that can cover three to six months of expenses. Singles should aim toward the six-month cushion, so any unexpected expenses can be paid off without having to use your credit cards or retirement savings. Keep the money in a liquid account.

Consider insurance. Life insurance can be a replacement income for those who depend on you. With no dependents, it might not be needed, but consider a small policy to cover funeral expenses.

Estate planning. Perhaps you think you don’t need an estate plan, because you’re single. However, you should have certain documents prepared, if you become incapacitated, so a trusted friend can make health and financial decisions on your behalf. This document is called a durable power of attorney for health care or an advance health care directive. You need this, along with a durable power of attorney for financial and legal matters.

If you’re single and have minor children, have a will drafted to designate a guardian to care for them. Likewise, if you’re single, most of your assets are in your own name. It’s important that your beneficiary information is up-to-date. In addition to your will, beneficiary designations on your retirement accounts and life insurance policy will direct how those assets are to be distributed.

You can also title some accounts to “transfer on death” to move the account directly to another person.

Take time to prioritize a financial and estate plan and review it regularly. Share this with your trusted family members so that you all will have peace of mind. We are here to assist you. Contact one of our Thousand Oaks estate planning attorneys at Family Security Law Group, APC for a complimentary consultation.

Elder abuse (also called "elder mistreatment," "senior abuse," "abuse in later life," "abuse of older adults," "abuse of older women," and "abuse of older men") is "a single, or repeated act, or lack of appropriate action, occurring within any relationship where there is an expectation of trust, which causes harm or distress to an older person.”

The phrase "any relationship where there is an element of trust" is important, because people known to the elderly person commit the most elder abuse. Abuse may show up in one or more aspects such as physical, emotional/psychological, sexual or financial. The National Adult Protective Services Association lists the most reported types of abuse:

Physical abuse;

Emotional abuse;

Neglect;

Isolation;

Financial or material exploitation;

Abandonment;

Sexual abuse; and

Self-neglect.

These types of abuse and exploitation are frequently committed by spouses, family members and formal caregivers in the home or in assisted living housing or nursing homes, as well as strangers who prey on the aging population.

Elder abuse can be noticed by neighbors, family members, friends and others, but is either denied or ignored because people don't want to get involved or butt in. However, everyone should pay attention to the warning signs. Report suspicious activity to law enforcement.

06/16/2017

“Five months after actor Alan Thicke died, he’s the subject of what’s shaping up to be a bitter family feud over the remainder of his estate.”

Alan Thicke’s two eldest sons, Brennan and Robin, filed a petition in Los Angeles County Superior Court over claims that their father’s widow is disputing the terms of the prenuptial agreement she signed in 2005, according to a story from Fox News.

A month before his death, the latest version of his living trust was drafted, offering control of his assets to his brother, Todd Thicke. But he had the option to decline, which gave co-trustees Brennan and Robin Thicke control.

Thicke allegedly left his three children equal shares of a Carpinteria ranch, 75% of his personal effects and 60% of his remaining estate. He left his wife Tanya Callau the ranch’s furnishings, 25% of his personal effects, $500,000 in a life insurance policy, all benefits from his various pensions and union memberships, along with 40% of his remaining estate. Alan also allowed for her to continue to live on the ranch, provided she’s able to reasonably maintain the property.

But Tanya is now claiming this agreement violates the terms of their initial prenuptial agreement.

The sons say Tanya didn’t dispute the terms in February, but now she has changed her posture with Alan gone. She claims the prenup she signed won’t be held valid. Instead, she’s seeking an arrangement that looks more like that to which she previously thought she was entitled.

In the petition, the sons’ attorney even suggested that Callau threatened to share details of this family squabble with the press, but her lawyer denies that claim.

“Tanya did not threaten to go to the press,” attorney Adam Streisand told Variety. “To the contrary, she said a court battle would attract the tabloid media, which she did not want, and so she encouraged everyone to get together for a family mediation to figure it all out. They refused. Repeatedly. So, ask yourself, who is it that is planting stories in the press and filing lawsuits, and that’s where you’ll find the real culprits.”

06/15/2017

“Now that the heirs are stepping up and Prince’s distinctive shadow is receding,

everyone sitting around the table wants to run the legacy like a business.”

The probate nightmare Prince created by not having a will has ended. The musician’s relatives have moved from defending their position, to gaining the legacy assets that are working harder to earn more money.

Without a will, it took six months to pay the funeral tax bill and a year for the probate court to clear his sister and five half-siblings as heirs. There is now talk that a distant relative will make a viable claim for a full share of Prince’s $200-$300 million estate.

When Prince died last year, managing his estate was the job of a local company, Bremer Trust. They hired an entertainment industry team to put the recording affairs in order. The team will turn his intellectual property into cash, which was sorely needed with the initial estate tax payments due early this year.

They had to come up with a $12 million deposit on what could eventually be a $100 million estate tax bill. The industry managers signed new recording rights contracts and a large book advance on royalty payments to pay the IRS. Although the hastily signed deals weren’t perfect, the alternative was to just allow the IRS to seize a share of the rights as payment in kind.

Now that the heirs have aligned their interests, they will next determine whose advice they’ll follow on the strategic questions. They have some breathing room with the IRS, so they can try to get the biggest possible lifetime cash flow now. This means returning to those quick licensing deals designed to generate instant income—paying a few million dollars—just to get the right to renegotiate for a better offer.

05/29/2017

“Here is what we know now about the state of Prince’s estate, one year later.”

When Prince died a year ago, he left behind many questions, including the fate of his unreleased recordings and an estate with no will.

Time’s article, “What We Know About Prince's Estate One Year After His Death,” reports that new documents unsealed recently give details about the investigation into the circumstances surrounding the 57-year-old rock star’s death from a fentanyl overdose. This investigation may be drawn out further. Prosecutors are still trying to determine how and where Prince got his prescription meds.

Prince died without a will and, as a result, his estate is subject to a much higher rate of taxation than had he created trusts for family or charitable causes. In January, the estate filed its first tax payment, estimated to be about $100 million, or about half the estate’s total value. The federal estate tax rate is 40% and the Minnesota state tax is 16%.

The rest of the estate will likely be divided equally among Prince’s six siblings. The estate taxes should be able to be paid over time. Despite the total value of the estate, most of the estate is tied up in properties, copyrights and trademarks, and items like musical instruments that have yet to be valued.

Prince’s request that his music be removed from online services, like Spotify and Apple Music, was part of his long background of protecting the copyrights to his work. It can be traced back to his contractual dispute with Warner Brothers in the 1990s and extended to his complicated relationship with the Internet as a means of music distribution.

The fate of Prince’s back catalog may be nothing, compared to all the unreleased music he left behind. Estimates say that 70% percent of the music was never released. However, there’s no will to dictate what should happen to these songs.

We can be confident that we’ll hear more of the unreleased music in the years to come.

02/24/2017

“This checklist is designed to provide Veterans/retirees and their loved ones with some help in preparing for the future.”

The Wadena Pioneer-Journal recently put together a checklist for veterans in the article, “What survivors should know; A veteran/retiree checklist.” This checklist isn’t all-inclusive and should be used with other tools you should discuss with your estate planning attorney. Be sure to create and maintain these files:

Military File. This should include your retirement orders, your DD 214, separation papers and medical records.

Military Retired Pay File. Make sure you have the claim number of any pending VA claims, along with the address of the VA office being used, a list of current deductions from benefits, and the name, relationship and address of the beneficiary for any unpaid retired pay at the time of death.

Annuities File. Be sure to include information about the Survivor Benefit Plan (SBP), the Reserve Component Survivor Benefit Plan (RCSBP), the Retired Serviceman's Family Protection Plan (RSFPP) and your civil service annuity.

Important Contacts. Maintain a list of banking and credit information in a secure location. This should include bank account numbers, the location of all deposit boxes, savings bond information, all stocks, bonds, and any securities, credit card account numbers and mailing addresses and 401(k) accounts.

Memberships. Keep a membership listing of all associations and organizations with their contact and membership fee information.

Family and Business Contacts. Create a list of all friends and business associates and their contact information.

After preparing all of this, make sure to address the following:

Burial. Have a discussion with your next of kin about your wishes for burial and funeral services. Include the cemetery location and type of burial. You should also consider pre-arranging your funeral services at your local funeral home.

Will. Once your decisions have been made and you’re comfortable with them, have a will prepared outlining specifics by an estate planning attorney.

Notifications. Be sure that your will and all other important documents are kept in a secure place, and let your family know where the documents are located. Some of the organizations to be notified in the event of a retiree death include:

Statistics show that Baby Boomers spend 13% of their annual income on unpaid caregiving, and those ages 71 to 91, called the Silent Generation, spend about 25%, mostly on spouses or partners. The GenXers—ages 35 to 50—spend about 24% of their annual income on caregiving for parents, and millennials (ages 18 to 34) spend the largest percentage, at 27%. This is surprising when millennials usually are thought of as mooching off of their parents.

A family meeting is a great way to assess your family’s financial and aging status and to plan for what may be required throughout the year. These types of discussions can help you plan for future elder care expenses in order to place them into a budget, along with your own retirement savings and savings for children’s education.

You can also ease the financial burden of caring for a loved one by investigating government programs. Many advocates anticipate legislation that will aid family caregivers. State and local governments may also give some tax breaks and other aid programs for seniors, particularly those individuals needing home renovations to stay in their homes. Those tasked with caregiving should also look into neighborhood religious and community groups for support. There may be senior- and disabled-specific funding programs, along with able-bodied volunteers who can help lighten the load.

Another option is aging life care professionals or what used to be called “geriatric care managers.” These professionals can help you untangle the messy world of elder care, including finances. These consultants are typically experienced social workers, gerontologists, and other health care professionals. They can help investigate potential local financial resources, provide assistance when your family is facing medical or other emergencies, and point you to an experienced elder law attorney for estate planning, such as power of attorney, health proxies, and other important documents.

01/09/2017

Debbie Reynolds, Carrie Fisher, George Michael, and Alan Thicke are all gone in just two weeks. Each person’s passing was a complete shock. Nobody could imagine all of this coming. A big reminder to all of us that life is very precious and to be embraced every day because, as we are witnessing, life is so fragile and vulnerable.

Four unique entertainers who now leave behind not only a grieving public, but more importantly, grieving family members who must somehow carry on with their lives. What estate planning, if any, did these celebrities do? We sincerely hope that each provided detailed direction and expressed their personal wishes legally so their families can have order, privacy, and some peace of mind during the difficult times ahead.